The U.S. Securities and Exchange Commission is proposing new rules that would allow gig workers to be partially paid in company equity.
If adopted, the proposed rules would be in effect for a five-year period and allow employers to pay gig workers up to 15 per cent of their annual compensation in equity, to a maximum of US$75,000 over three years.
The amount and terms of any securities issued wouldn’t be subject to individual bargaining or the worker’s ability to elect between payment in securities or cash.
Jay Clayton, chairman of the SEC, said in a press release the proposal reflects changes in work relationships and technology. “The rules we are proposing today are intended to allow [gig workers] to participate at a measured level, up to 15 per cent of their compensation, in the growth of the companies that their efforts support.”
The proposal will be subject to a 60-day public comment period.